What is Company Registration? Under the Ministry of Corporate Affairs, every company is to be registered by the registrar office as per Companies Act.
This act maintains two types of companies called private and public companies.
A Company Can Be Registered In The Following Forms:-
• • • • •
Private Limited Company Limited Liability Partnership One Person Company. Producer Company Public Limited Company
Private Limited Company: - Private Limited Company, the most popular legal structure for businesses, should be chosen by anyone looking to build a scalable business. Private Limited Companies are those types of companies where a minimum number of members is two and maximum number is fifty. One Person Company: - One Person Company can be formed by a single person and OPC gives a single director to enjoy full control over the business. Limited Liability Partnership: - LLP combines the benefits of both the Company & Partnership into a single form of association. The concept of LLP has been introduced in India by way of Limited Liability Partnership Act, 2008. It can be registered with minimum two Partners.
Producer Company: - Producer Company is defined under the Companies Act and its object is specified under section 581B. Producer Company activities are related to production, grading, pooling, handling, marketing, selling, and packaging of produce, manufacture, the sale of machinery etc.
Public Limited Company: - A Public Limited Company has more credibility and transparency in business than a private limited company. Public limited company has high financial exposure to source capital from the Public as Equity or debenture or deposit.
➢ Shareholders have limited liability ➢ Extra capital is available to fund expansion of the business ➢ Continuity of existence
➢ Costly to set up ➢ A lot of legal requirements when forming a company ➢ Shares cannot be transferred to the general public
➢ More financial capital ➢ Combined managerial skills ➢ Ease of starting ➢ Tax breaks/advantages ➢ Limited Liability for Limited Partners
➢ Unlimited Liability for general partners ➢ Difficult to Raise Capital ➢ Potential disagreements